In September 2017, MDRC released interim findings from the Paycheck Plus demonstration and evaluation of an enhanced Earned Income Tax Credit for low-wage workers without dependent children in New York City. Here are a few answers to questions we’ve received about the results.
Interim Findings from the Paycheck Plus Demonstration in New York City
Paycheck Plus offers workers without dependent children an enhanced Earned Income Tax Credit (EITC) worth up to $2,000 per year for three years (four times the current EITC for singles). Results after two years from a random assignment evaluation show that it has increased income and work rates.
Three-Year Impacts from the WorkAdvance Demonstration
WorkAdvance offers training and placement services to help prepare individuals for quality jobs in sectors that have strong local demand and advancement opportunities. In this update on employment and earnings only, the most experienced provider continued to produce substantial impacts on both; one other provider increased earnings for late enrollees.
Boosting the Earned Income Tax Credit for Workers Without Dependent Children
The Earned Income Tax Credit (EITC) promotes work and raises over six million Americans out of poverty each year. Early results from an ongoing demonstration suggest that expanding the EITC for singles, an idea with bipartisan support, is feasible and can increase employment and income while reducing poverty.
Even in good economic times, workers with limited education may need help getting or regaining a foothold in the job market. Effective career training programs exist. Approaches that target in-demand industries and closely involve employers can get results, benefiting high school students, adults without diplomas, and long-term unemployed workers.